On January 3rd, GL Capital announced that LOCO HK (08162.HK) has entered into a placement agreement with the placement agent. According to this agreement, the placement agent (as the company's agent) agrees to use its best efforts to place a minimum of six subscribers (who and whose ultimate beneficial owners will be independent third parties) to subscribe for up to 165,880,800 placement shares at a price of HKD 0.48 per share.

Assuming that there have been no changes to the company's issued shares from the announcement date to the deadline, the maximum of 165,880,800 placement shares represents 20% of the company’s existing issued shares; the placement price of HKD 0.48 per share represents a discount of approximately 15.79% to the closing price of HKD 0.57 per share reported on the Stock Exchange on January 3, 2025 (the date of the placement agreement); the net proceeds (after deducting all associated expenses related to the placement, including but not limited to placement commissions and legal expenses, approximately HKD 0.75 million) are estimated to be approximately HKD 78.8728 million.